Oklahoma City’s Continental Resources, Inc. released what it called “outstanding” first quarter results for 2021 showing net income of $260 million and 72 cents earnings per share.
At the same time the company leadership projected $3.1 billion for full-year 2021 cash flow from operations and $1.7 billion projected full-year 2021 cash flow at $60 West Texas Intermediate crude prices. This is an approximately 30% increase to projected cash flow from operations versus original 2021 guidance.
“Continental’s outstanding first quarter results and accelerated shareholder returns, which includes our reinstated dividend and exceptional progress on debt reduction, underscore Continental’s commitment to delivering strong cash flow generation, consistent asset performance and operational excellence,” said Bill Berry, Chief Executive Officer.
Adjusted net income for first quarter 2021 was $278.9 million, or $0.77 per diluted share. Net cash provided by operating activities for first quarter 2021 was $1.04 billion and EBITDAX was $962.6 million (non-GAAP).
The company’s Board of Directors approved the reinstatement of the quarterly dividend at $0.11 per share on the Company’s outstanding common stock, payable on May 24, 2021 to stockholders of record on May 10, 2021. This dividend is double the Company’s previous quarterly dividend and underscores the Company’s commitment to delivering strong shareholder capital returns.
Given the Company’s significant annual cash flow generation, the Company is accelerating its debt reduction and projects debt below $4 billion by year end 2021. As previously announced, the Company has reduced its total debt to $4.97 billion, with a cash balance of $96 million, equating to net debt of $4.88 billion (non-GAAP) as of March 31, 2021.
The Company’s second quarter 2021 to fourth quarter 2021 crude oil differentials guidance per barrel of oil is projected to average ($3.75) to ($4.75) and the Company’s natural gas differentials guidance per Mcf is projected to average ($0.50) to $0.00.
First quarter 2021 total production averaged 307.9 MBoepd. First quarter 2021 oil production averaged 151.9 MBopd. First quarter 2021 natural gas production averaged 936.5 MMcfpd.
“Strong first quarter 2021 results underscore our commitment to capital discipline and were driven by the significant cost performance and operational efficiencies of our teams,” said John Hart, Senior Vice President, Chief Financial Officer & Chief Strategy Officer.
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